Axfood, Alight sign power purchase deal for Sweden's biggest solar park

Axfood AB

21/06/2023 06:00

OSLO, June 21 (Reuters) - Swedish solar firm Alight and
food retailer Axfood  AXFO.ST  have signed a power purchase
agreement (PPA) to build Sweden's largest solar park, the
companies said on Wednesday.
    Under the deal, Alight will build, own and operate the solar
farm in Hallstavik, north of Stockholm, and Axfood will purchase
the produced electricity for "a low, fixed price for 12 years",
the firms said without elaborating.
    The projected capacity of 64 megawatt (MW) will make it
three times as large as any other Swedish solar park at the
estimated date of commissioning in the second quarter of 2024. 
    Construction will begin this week, with the park set to
occupy 71 hectares of land, equivalent to 101 soccer fields and
able to deliver about 63 gigawatt hours (GWh) of electricity per
year, enough to power around 12,600 single Swedish homes.
    "While we have our sights set on continuing to reduce our
environmental impact, we also want to contribute to increasing
the amount of renewable electricity on the market," said Axfood
CEO Klas Balkow.
    The Hallstavik park also marks the first time a solar park
in Sweden is financed through debt instead of equity, signalling
a shift in the feasibility of large-scale solar in Sweden,
according to Alight CEO Harald Oeverholm.
    The debt financing is being provided by Swedish bank SEB. 
    Alight is developing more than 1,000 MW of PPA-based
projects across Sweden, with at least a further 250 MW under
development across the rest of Europe.

 (Reporting by Nora Buli, editing by Terje Solsvik)
 ((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))